Super Rite Foods, a grocery wholesaler based in Harrisburg, Pa., announced yesterday that it plans to acquire the Food-A-Rama supermarket chain in Baltimore. Neither company would disclose the terms.
"Baltimore is Super Rite's most important metropolitan market and has been for years," said Glynn H. Coryell, vice president of finance at Super Rite. "Therefore, this is a move to protect our position in that market. When the company became available for sale, we naturally were very interested."
Super Rite supplies more than 200 supermarkets and other grocery stores throughout central Pennsylvania, Maryland, Delaware and West Virginia, company officials said. For the six months ended Sept. 1, it reported net income of $2.16 million on sales of $157.3 million.
Food-A-Rama has 36 stores in the Baltimore market and 12 in the Washington area. In Baltimore, the company trades under the names Food-A-Rama, Super Super and Cost Saver Warehouse. In Washington, the company operates 10 Basics Food Warehouses that it acquired from Grand Union Co. in March.
Food-A-Rama also owns two Super Super Food Stores -- a cross between a grocery store and a discount food warehouse -- which it also acquired from Grand Union in March. Seven of the Baltimore Food-A-Rama supermarkets are part of a joint venture with B. Green & Co. Inc., a wholesale food distributor in Baltimore in which Food-A-Rama maintains a 50 percent interest, and the sales of those stores are not included in Food-A-Rama's company sales figures.
Excluding the joint-venture stores and reflecting a partial year for its Washington stores, Food-A-Rama anticipates revenue of more than $320 million for the fiscal year ending Dec. 30, Super Rite said. Super Rite officials said that Food-A-Rama's sales volume for fiscal 1985 is projected to reach $385 million.
The acquisition is expected to be completed Jan. 9.